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Citigroup to Buy $3.1 Billion (Turkish) Akbank Shares

Citigroup and Akbank announced Wednesday that they have signed a definitive agreement under which Citigroup will purchase a 20 percent equity position in Akbank for approximately $3.1 billion, according to a statement issued on Tuesday by the American group.

Citigroup, the largest finance group in the world, will buy the shares at a price of $6.50 per 100 shares, according to the agreement.

The U.S. banking giant will get a seat on Akbank's nine-person board and it was also granted a right of first refusal or first offer over the sale of any of their Akbank shares in the future by Sabanci Holding, the bank's largest investor, which holds 34 percent of all shares.

"What made this transaction particularly attractive is our strategic collaboration, which provides opportunities to broaden our international distribution capabilities," Citigroup Chairman and CEO Charles Prince said in a statement.

The transaction is expected to be finalized in 60 to 90 days and it will be accretive to Citigroup’s earnings in one year, the statement added.

Akbank has $35.8 billion in assets and $22.7 billion in deposits as well as 674 branches and 1,551 ATMs. Citigroup has $1.6 trillion in assets with Citibank Turkey having $2.1 billion in assets and $1.6 billion in deposits.
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